- Details
- Category: Past Issues
PUTNAM --- With a combined 75 years in business between them, Bob Breault of Cargill Chevrolet and Rick Place of Putnam Ford know a thing or two about creating jobs. They employ dozens of local workers in skilled occupations that support local families. While they’ve weathered the ups and downs in the economy, they’re worried about new taxes being proposed by Governor Dan Malloy— taxes that threaten to cripple the state's fragile auto industry and cause the loss of hundreds of jobs.
If passed, the governor’s budget plan would put an end to the popular tax exemption on the value of a trade in— which could add hundreds of dollars to the cost of buying a car. And taxes would be increased by almost 50 percent on cars priced over $50,000.
“Connecticut needs to get its fiscal house in order, but doing it on the backs of middle-class workers isn’t the way to go. The governor’s revenue projections are just plain wrong. These new taxes don’t just mean a few dollars out of buyers’ pockets, they’re going to put more people out of work,” said Place.
“We know that our legislators are trying at the state capitol, but they have to think a few steps down the line - what the impact of their decisions will be long term,” he continues. Breault said, “Good decisions now will help our state. Bad decisions will just lead to more jobs being lost."
Dealers fear that tax increases will drive buyers over state lines to make auto purchases, and the Connecticut Auto Retailers Association projects a resulting loss of 735 Connecticut jobs, and $00 million in state revenue.
The association said in the last two years, 3,000 Conn. jobs have been lost as 80 of the state’s auto dealerships have closed their doors. Taxing higher priced cars at 9.25 percent and taxing the trade-in value of a car (down payment) at 6.25 percent will mean a big loss, not a gain to the state.
During its meeting with Gov. Malloy, the Connecticut Auto Retailers Association projected increasing taxes on auto purchases will result in fewer cars being sold, producing less sales tax, and more people losing their jobs and benefits.